Shivalik Bimetal Controls Limited reaches 29.85% EBITDA margin

Shivalik Bimetal Controls Limited reported standalone EBITDA margin of 29.85% in Q2 FY27, 605 basis points above Q2 FY26, after EBITDA rose 53.46% to Rs 43.26 crore against 22.37% revenue growth to Rs 144.91 crore. Gross margin increased 438 basis points to 54.20%, while employee and other expenses rose more slowly than gross profit.

How did Shivalik expand EBITDA margin in Q2 FY27?

Shivalik expanded standalone EBITDA margin by 605 basis points, or 6.05 percentage points, from 23.81% in Q2 FY26 to 29.85% in Q2 FY27. Revenue increased by Rs 26.49 crore to Rs 144.91 crore, while EBITDA increased by Rs 15.07 crore to Rs 43.26 crore. EBITDA therefore grew 53.46%, compared with 22.37% revenue growth.

The immediate driver disclosed by Shivalik was gross-margin expansion. Gross profit rose 33.14% to Rs 78.54 crore, exceeding revenue growth, and gross margin moved to 54.20% from 49.82%. Shivalik attributed the 438-basis-point increase to a richer product mix and disciplined input-cost management. Cost of goods sold rose 11.68% to Rs 66.37 crore, slower than revenue and gross profit.

Which costs changed relative to Shivalik's revenue growth?

Shivalik's employee expenses increased 19.07% to Rs 13.78 crore and other expenses rose 11.82% to Rs 21.51 crore in Q2 FY27, both below the 33.14% gross-profit increase. Together, those two cost lines rose by Rs 4.49 crore, whereas gross profit increased by Rs 19.55 crore. The difference between those movements supported the Rs 15.07 crore increase in standalone EBITDA.

Below EBITDA, profit growth moderated because finance cost, depreciation and tax rose while other income fell. Finance cost increased 101.80% to Rs 1.53 crore, depreciation rose 52.73% to Rs 4.35 crore, and other income declined 40.82% to Rs 2.03 crore. Even so, profit before tax increased 40.68% to Rs 39.42 crore and profit after tax rose 37.39% to Rs 28.69 crore; the PAT margin expanded 216 basis points to 19.80%.

The standalone result differed from the consolidated profile. Consolidated Q2 FY27 revenue increased 43.95% to Rs 197.79 crore and consolidated EBITDA rose 61.56% to Rs 50.20 crore, but the EBITDA margin was 25.38%, compared with 29.85% standalone. Consolidated gross margin declined 157 basis points to 45.50%, while standalone gross margin increased 438 basis points to 54.20%.

What product trends supported Shivalik's Q2 revenue growth?

Shivalik generated nearly equal Q2 FY27 revenue from its two core products: Shunt Resistors contributed Rs 72.18 crore, or 49.8% of revenue, and Thermostatic Bimetals contributed Rs 72.73 crore, or 50.2%. Shunt revenue increased 22.43%, while Bimetal revenue rose 22.32%. This balanced revenue split came despite different volume trends in the two products.

Shunt volume fell 16.34% to 241,453 kilograms in Q2 FY27 from 288,597 kilograms in Q2 FY26, yet Shunt revenue rose from Rs 59 crore to Rs 72 crore. Shivalik said the Shunt increase was realisation-led, with average realisation up 46%. In contrast, Bimetal volume increased 9.64% to 380,956 kilograms from 347,458 kilograms, while revenue advanced from Rs 59 crore to Rs 73 crore.

Total Q2 volume declined 2.15%, as the 47,144-kilogram reduction in Shunt volume exceeded the 33,498-kilogram increase in Bimetal volume. Revenue growth was therefore not solely a result of higher shipment volume. Shivalik reported revenue growth of more than 22% in both product lines while combined volume was lower, with Shunt realisation identified as a key factor in that product's growth.

How did Shivalik's regions and first-half results compare?

Shivalik's India revenue increased 28.0% to Rs 69.9 crore in Q2 FY27 and represented about 47% of standalone core-product revenue. In the same quarter, Asia Others revenue rose 76.1% to Rs 33.4 crore, led by a 94.3% increase in Shunt revenue. Europe grew 22.7%, whereas the Americas declined 24.3% because of softer Shunt offtake, according to the presentation.

The segment detail shows India and Rest of Asia offset weaker Shunt sales in the Americas. Shunt revenue in Rest of Asia doubled to Rs 28 crore from Rs 14 crore and India increased to Rs 27 crore from Rs 21 crore, while the Americas fell to Rs 8 crore from Rs 15 crore. For Bimetals, India rose to Rs 43 crore from Rs 33 crore, Europe reached Rs 12 crore from Rs 10 crore, and the Americas increased to Rs 14 crore from Rs 13 crore.

For H1 FY27, Shivalik reported standalone revenue of Rs 276.72 crore, up 17.70%, and EBITDA of Rs 79.68 crore, up 38.17%. The H1 EBITDA margin rose 427 basis points to 28.80%, below the 29.85% achieved in Q2 but above the 24.53% recorded in H1 FY26. H1 PAT increased 31.62% to Rs 55.09 crore and the PAT margin improved 211 basis points to 19.91%.

What balance-sheet and working-capital changes accompanied growth?

Shivalik's H1 FY27 standalone balance sheet showed total assets of Rs 633 crore, compared with Rs 520 crore in H1 FY26. Inventory increased to Rs 198 crore from Rs 131 crore, trade receivables rose to Rs 121 crore from Rs 110 crore, and cash and cash equivalents declined to Rs 59 crore from Rs 101 crore. Net worth increased to Rs 493 crore from Rs 421 crore over the same comparison.

Working-capital efficiency ratios improved despite the higher inventory balance. Collection days declined to 79 in H1 FY27 from 84 in H1 FY26, inventory days fell to 181 from 186, and net working-capital days decreased by 9 days to 221. Accounts payable days moved from 40 to 39. These ratios show a shorter cash-cycle measure in the first half alongside higher working-capital balances on the larger asset base.

Conclusion

Shivalik's Q2 FY27 standalone margin expansion reflected a 54.20% gross margin, revenue growth in both Shunts and Bimetals, and employee and other expenses that rose more slowly than gross profit. The resulting 53.46% EBITDA growth outpaced 22.37% revenue growth, while PAT rose 37.39% despite higher finance cost and depreciation and lower other income.

Next, readers can watch Shivalik's disclosed plan to add printed circuit board assembly products, process some raw materials in-house and expand geographic access through its Milan, Italy presence. Management is also exploring strategic acquisitions for market expansion, gross-margin improvement and cross-selling to original equipment manufacturers, while the presentation leaves unresolved whether Americas Shunt revenue, down 47.43% year on year to Rs 8.02 crore in Q2, recovers.